Examlex
A firm that takes on too much debt could experience problems repaying its lenders or meeting promises made to stockholders.
Current Ratio
A liquidity ratio that measures a company's ability to pay short-term obligations with its current assets.
Acid-Test Ratio
A stringent indicator of whether a firm has enough short-term assets to cover its immediate liabilities without selling inventory.
Current Ratio
A financial metric assessing a firm's capacity to settle short-term debts using its existing assets.
Liquidity Ratios
Liquidity ratios are financial metrics used to assess a company's ability to meet its short-term obligations by comparing its liquid assets to its current liabilities.
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